Teck Resources has ruled out cutting a deal with
Fortescue Metals Group
a year after buying a small stake in the iron ore miner.

Teck chief executive Don Lindsay said on Thursday his company had “moved on" from plans to buy a producing iron ore asset because it had been unable to do so at an appropriate price following discussions with a number of players.

“We have spent a lot of time looking at iron ore but we haven’t found an entry point," Mr Lindsay told analysts after the release of Teck’s third-quarter earnings report. “We’ve had detailed discussions with a number of players but it is pretty clear their expectations for price are very rich so we have made the decision to move on."

There has been speculation about a deal between Teck and Fortescue since the Canadian miner bought a 2.94 per cent stake in the Australian miner last year, believed to be held through Quinambo Nominees. Fortescue’s website says Teck still held the stake as of October 15.

Teck was “not looking at iron ore at this stage", Mr Lindsay emphasised to analysts.

“Fundamentally we think it would be a good fit, but we are not spending any more time on it," he said.

His comments could spark speculation that Teck will look to sell its stake in Fortescue.

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However, if it were to sell at this point, it would be doing so at a loss. The exact price Teck paid for its Fortescue shares is unknown, but during its period of buying the average price of shares in the Australian miner was $4.69.

Fortescue shares closed at $4.18 yesterday.

In an investor presentation, the company said it expected to produce a record 20 million tonnes in the December quarter due to its ongoing expansion.